American residents who did not utilize their Recovery Rebate Credit for 2021 have until April 15 to file their taxes and potentially claim up to $1,400 from the Internal Revenue Service (IRS).
The IRS initiated payments in December 2024 to those eligible individuals who failed to claim the credit, which is intended for people who did not receive one or more stimulus checks during the COVID-19 pandemic.
Eligibility and Automatic Payments: The IRS has identified over 1 million taxpayers who neglected to claim this credit. To be eligible, individuals must file their 2021 tax returns and request the credit. Automatic payments will be issued to those who correctly filed their returns.
See Also: Federal Tax Deadline 2025: What You Should Know Before April 15
Payment Information and Income Caps: Qualified individuals can receive up to $1,400, with income thresholds set at $75,000 for single filers and $150,000 for married couples.
If you’re uncertain whether you claimed the credit, you can verify your 2021 return or check the Economic Impact Payments on the IRS website.
Filing Deadline and Requirements: Taxpayers need to be aware that they must file their returns by the April 15 deadline to be eligible for the payment.
The IRS will notify eligible individuals by mail concerning the payment, which will be disbursed via direct deposit or through a paper check.
Issues within the IRS
The IRS recently laid off thousands of probationary workers during the busy tax season. This decision was contested but reinstated following a Supreme Court ruling, resulting in worries about delays in refunds and the security of data.
Additionally, Social Security Commissioner Michelle King stepped down after a disagreement with the Department of Government Efficiency (DOGE) regarding access to sensitive beneficiary data.
Simultaneously, reports surfaced that DOGE quietly deleted or modified over 1,000 canceled contract listings, claiming to have removed more than $4 billion in savings. Despite the mounting scrutiny, DOGE has not provided a direct explanation, instead attributing the issues to federal agencies.
Read Next: When Are Your Deposits Flagged? Understanding How And Why Banks Report Transactions To The IRS
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